(Table: Nike and Reebok Advertising Game) Use Table: Nike and Reebok Advertising Game. The sneaker industry is dominated by Nike and Reebok, and each firm spends a lot of money on advertising. Suppose each firm is considering a costly television commercial during the World Series. The table shows the payoff matrix of profits that each firm would receive from its advertising decision, given the advertising decision of its rival. Profits in each cell of the payoff matrix are given as (Nike, Reebok). If each firm independently decides whether to advertise, the Nash equilibrium is for Nike _____ and Reebok _____ during the World Series.

A)to advertise; to advertise
B)not to advertise; not to advertise
C)not to advertise; to advertise
D)to advertise; not to advertise

Question

(Table: Nike and Reebok Advertising Game) Use Table: Nike and Reebok Advertising Game. The sneaker industry is dominated by Nike and Reebok, and each firm spends a lot of money on advertising. Suppose each firm is considering a costly television commercial during the World Series. The table shows the payoff matrix of profits that each firm would receive from its advertising decision, given the advertising decision of its rival. Profits in each cell of the payoff matrix are given as (Nike, Reebok). If each firm independently decides whether to advertise, the Nash equilibrium is for Nike _____ and Reebok _____ during the World Series.
​
 
A)to advertise; to advertise 
B)not to advertise; not to advertise 
C)not to advertise; to advertise 
D)to advertise; not to advertise

Quizplus · Accepted Answer

The Answer of (Table: Nike and Reebok Advertising Game) Use Table: Nike and Reebok Advertising Game. The sneaker industry is dominated by Nike and Reebok, and each firm spends a lot of money on advertising. Suppose each firm is considering a costly television commercial during the World Series. The table shows the payoff matrix of profits that each firm would receive from its advertising decision, given the advertising decision of its rival. Profits in each cell of the payoff matrix are given as (Nike, Reebok). If each firm independently decides whether to advertise, the Nash equilibrium is for Nike _____ and Reebok _____ during the World Series.
​
 
A)to advertise; to advertise 
B)not to advertise; not to advertise 
C)not to advertise; to advertise 
D)to advertise; not to advertise